Premium Malawi

Premium Tobacco Malawi Limited (PTML) was established in March 2007.

PTML is a significant tobacco merchant in Malawi, and has been growing its market share on an ongoing basis. PTML primarily deals in Air Cured Burley (ACB), but also in Flue Cured Virginia (FCV) and Dark Fired Cured (DFC) tobaccos. The company sources its burley and DFC tobacco from its Integrated Production System (IPS) with its small scale contracted farmer base.

The FCV is primarily sourced from contracted commercial farmers.

With increased market share, PTML established Kanengo Tobacco Processors Limited (KTPL) in 2010 and invested in building a factory to improve processing flexibility, quality and cost efficiency. KTPL has an annual capacity of 50,000 MT. The factory comprises a leaf processing line, green and packed warehouses, clinic and an office block. The factory is open to third party processing.

Premium focuses on Corporate Social Responsibility through charitable and social activities within the areas of operation and an intensive focus on good labour practices. Agronomy and field staff work very closely with stakeholders for the elimination of forced labour and child labour, as well with the Elimination of Child Labour in Tobacco (ECLT ) foundation based in Geneva, Switzerland.

Tobacco Industry in Malawi

Tobacco growing started in the late 19th century with exports starting in the early 1900’s which was instrumental in establishing tobacco as the primary cash crop in Malawi.

Malawi produces three main tobacco types namely; ACB, FCV and DFC. Malawian ACB is the main crop and is widely used by international manufacturers. Small scale farmer co-operatives operate through a contract system where tobacco companies engage growers to grow tobacco on a contract basis, mainly BUR and DFC, with commercial farmers growing the FCV.

All tobacco is purchased through the four registered auction floors in the country. These floors are managed by the Auction Holdings Limited (a government own group of companies). Government still regulates tobacco production and trade through the Tobacco Commission. Since 2012, the average split between contract and auction production has been 80:20. The country has four tobacco processing factories based in the capital city, Lilongwe.

Crop Annual Timeline